How Savings Accounts Work and the Different Types

A savings account is typically a fully taxable low-yield bank instrument, but money is extremely liquid and FDIC insured.

A savings account is either aPassbook Account in which records of deposits, withdrawals and interest are stamped and recorded in a booklet, or Statement Savings whereby the consumer receives a quarterly or monthly statement showing deposits, withdrawals and interest activity.

We used to say savings accounts were suitable as a learning tool to teach children about banks and saving, but grownups were too big for this ride. However, linked savings accounts are a different story.

Linked Savings Accountsare linked to a personal checking account, and money to or from the saving account is electronically transferred at customer request. These often pay much high interest than old style account.

About Safe Money PlacesSafe Money Places® and this website are operated by SMP International LLC. If you have an questions or concerns, please contact us at 1-877-844-0900 OR﻿contact ﻿﻿us﻿by filling out our form.

Safe Money Places® does not warrant anything on this website, although we hope everything is accurate. We do not provide tax, legal, accounting, or investment advice. You need to do your own homework and consult your own experts on your personal situation. This website is protected by applicable copyright laws. You may make or print one copy of any material for personal use, further copying or distributing is prohibited without prior written permission.​